ACCA · Applied Skills
Audit and Assurance
Develop understanding of the audit process from planning through to reporting. Learn audit risk assessment, evidence gathering techniques, internal controls evaluation, and the auditor's reporting responsibilities.
3 hours
Exam length
50%
Pass mark
Computer-Based Exam (CBE)
Format
March, June, September, December
Sittings
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ACCA Audit and Assurance
Audit and Assurance (AA) is an Applied Skills paper that introduces students to the process of carrying out an external audit of financial statements. It covers the entire audit process from accepting an engagement through to issuing the auditor's report.
The paper covers the audit framework and regulation, planning and risk assessment, internal controls, audit evidence and testing, and review and reporting. Students learn to assess audit risk, design appropriate audit procedures, evaluate evidence, and form conclusions on financial statements.
AA also addresses professional ethics, corporate governance, and the relationship between internal and external audit. The paper emphasises the practical application of auditing standards and procedures in a realistic business context.
AA is essential for careers in external audit, internal audit, and assurance services. The skills developed in this paper are the foundation for working in audit firms, internal audit departments, and regulatory bodies, providing a clear pathway to roles such as Audit Senior, Audit Manager, and Head of Internal Audit.
Learning outcomes
What you'll be able to do.
01
Explain the audit framework, regulation, and professional ethics
02
Assess audit risks and plan an appropriate audit approach
03
Evaluate internal control systems and recommend improvements
04
Design and apply audit procedures to obtain sufficient evidence
05
Evaluate audit evidence and draw appropriate conclusions
06
Prepare auditor's reports and communicate findings effectively
AA Exam Syllabus
The AA syllabus covers the key topics you'll be examined on.
Audit Framework and Regulation
- The concept of audit and other assurance engagements
- External audits
- Corporate governance
- Professional ethics and ACCA's Code of Ethics and Conduct
Planning and Risk Assessment
- Obtaining, accepting and continuing audit engagements
- Objective and general principles
- Assessing audit risks
- Understanding the entity and its environment
- Fraud, laws and regulations
- Audit planning and documentation
Internal Control
- Systems of internal control
- The use and evaluation of systems of internal control by auditors
- Tests of controls
- Communication on internal control
- Internal audit and governance
- The scope of the internal audit function, outsourcing and internal audit assignments
Audit Evidence
- Assertions and audit evidence
- Audit procedures
- Audit sampling and other means of testing
- The audit of specific items
- Automated tools and techniques
- The work of others
- Not-for-profit organisations
Review and Reporting
- Subsequent events
- Going concern
- Written representations
- Audit finalisation and the final review
- The Independent Auditor's Report
ACCA AA Exam Structure
Everything you need to know about the AA exam format, timing, and what to expect on exam day.
Duration
3 hours
Format
Computer-Based Exam (CBE)
Structure
AA is a 3-hour computer-based exam (CBE) with two sections. Section A: three OT cases, each with five objective test questions of 2 marks (30 marks total). Section B: three constructed response questions — one worth 30 marks and two worth 20 marks each (70 marks total). All questions are compulsory. Total 100 marks; 4 exam sessions per year (Mar/Jun/Sep/Dec); 50% pass mark.
Sittings
March, June, September, December
Pass mark
50%
Your Guide To Pass ACCA AA
Expert tips from our tutors to help you prepare effectively and pass your AA exam on the first attempt.
Understand Audit Risk
Audit risk assessment is central to AA. Be able to identify risks of material misstatement (inherent and control risks) from a scenario and explain their impact on the audit approach.
Design Audit Procedures
Practice designing specific audit procedures for different account balances and assertions. Procedures should state clearly what is done, to what, and why.
Apply Ethics Knowledge
Professional ethics questions feature in every AA exam. Understand the ethical threats (self-interest, self-review, advocacy, familiarity, intimidation) and corresponding safeguards.
Know the Auditor's Report
Understand the structure and content of unmodified and modified audit reports. Be able to explain when each type of modification is appropriate.
Link Internal Controls to Procedures
Be able to evaluate internal controls, identify weaknesses, and explain the consequences of those weaknesses. Then design tests of controls and substantive procedures in response.
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See ACCA pricing →Frequently Asked Questions About AA
Everything you need to know about the Audit and Assurance exam and how to prepare for it.
What is ACCA Audit and Assurance (AA)?+
Audit and Assurance (AA) is an Applied Skills paper that covers the external audit process. It develops understanding of audit risk, planning, internal controls, evidence gathering, and reporting on financial statements.
How long is the AA exam?+
The AA exam is 3 hours long with Section A (objective test questions worth 20 marks) and Section B (constructed response questions worth 80 marks).
When can I sit the AA exam?+
AA is available in four exam sessions per year: March, June, September, and December.
Do I need to know auditing standards for AA?+
Yes, AA is based on International Standards on Auditing (ISAs). You need to understand and apply the key principles from ISAs, though you are not required to memorise standard numbers or quote them in the exam.
What topics are most heavily tested in AA?+
Audit risk assessment, designing audit procedures, internal controls evaluation, and the auditor's report are consistently the most heavily tested areas in AA.
What is the pass mark for AA?+
The pass mark for AA is 50%. The exam is marked out of 100.
How does AA relate to other ACCA papers?+
AA provides the foundation for Advanced Audit and Assurance (AAA) at the Strategic Professional level. It also connects to Financial Reporting (FR) as auditors examine financial statements, and to Corporate and Business Law (LW) regarding the legal framework.
Is AA calculation-heavy?+
No, AA is primarily a knowledge and application paper. While some materiality calculations may be required, the exam mainly tests your ability to assess risk, design procedures, evaluate controls, and communicate findings in writing.
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